Union Cabinet approves Varishtha Pension Bima Yojana 2017

The Union Cabinet, presided by the Prime Minister Narendra Modi, on 24 January 2017 gave its post-facto approval for launching of Varishtha Pension Bima Yojana 2017 (VPBY 2017).

The Varishtha Pension Bima Yojana 2017 is a part of Union Government’s commitment for financial inclusion and social security.

Key highlights of the Varishtha Pension Bima Yojana 2017

• The Life Insurance Corporation of India (LIC) will implement the VPBY 2017 during the current financial year.

• The scheme aims at providing social security during old age and protecting elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions.

• It will provide an assured pension based on a guaranteed rate of return of 8 per cent per annum for ten years.

• The scheme also has an option to opt for pension on a monthly/quarterly/halfyearly and annual basis.

• The difference between the return generated by LIC and the assured return of 8 per cent per annum will be borne by Government of India as subsidy on an annual basis.

• The scheme is proposed to be open for subscription for a period of one year from the date of launch.